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Mark,
Yee gads !! You mean you can program your systems to stand up to market
shocks?
*Yes, price shocks shouldn't be allowed to become a part of the system data.
The shocks should be identified and planned around. There is a pitfall of
backtesting a system and allowing these shocks to become part of the norm.
Once you identify what is a shock for a particular market you can program
around it. Having the system recognize it, will save thousands of dollars
of hard earned profits. Example if you were short like I was, the system
ignores it as long as its within a big stop parameter. If I had been long
the system would have been screaming to take profits.
Totally unemotional and still on an even keel on rough seas,that is, you can
incorporate the program to absorb the sudden big waves. That maybe the only
advantage/superiority of a computer system over us puny humans.
*Well after watching these shocks take place in so many markets. I figured
it was time to build a shock system the only plays shocks when they occur.
Rather than having a system plan around these events like I'm doing now.
Make a system whose primary method is to trade shocks. Run this on markets
globally and there should be plenty of action to keep me busy.
This event trading system of yours, Is it something like artificial
intelligence?
*No actually the system was developed using Time and Volatility as a basis.
To get a grip on these items I like Efficiency Ratio's and pint logs to keep
track. One item I'll mention is that when you test data for a shock, you
must omit the shock itself from the data samples. If you do not then the
next shock may be overlooked because your normal data is now more volatile
than in the past due to the inclusion of the previous shock.\
mb
ps for Neal, yes I had a indicator with a projection of this sp spike we
just went through, it was predicted on the 13 th. I can show you a chart if
you wish.
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